Question 1.

1. (TCOs F, G) If diversification reduces risk, why not pursue diversification to the point where all risk is eliminated? (Points : 20)

Question 2.

2. (TCOs F, G) What is a risk-reward indifference curve, and what gives it its characteristic shape? (Points : 20)

Question 3.

3. (TCO H) How do the equity investors perspective and the lenders perspective approaches to preliminary feasibility analysis differ? (Points : 30)